Using a money-transfer system, money can be transferred between two people in two different locations. A money transfer company can have a number of agents, each of whom establish a site for money to be sent or received. Thus, a customer provides money (or other value) to be transferred at a sending site to be picked up by friend, colleague, or family at a receiving site. At this point, transaction information is entered into a record that is received at a money-transfer system hosted by the money transfer company. The record includes information that identifies the sending-site agent, the sender, the intended recipient, and the amount of money being transferred, among other things. The intended recipient then presents himself to a machine or representative at a receive site of a service provider or representative to obtain the transferred money or other value. A representative or machine at the receive site can verify and record the identity of the receiver and gives the receiver the value.
Money-transfer systems can involve many agents who may defraud the company or its customers. First, most money transfers involve transactions occurring at multiple locations hosted by different agents. Thus, an agent in charge of either the sending or receiving site may be involved in fraud. Further, each site involves a number of representatives who may also be involved in fraud. For example, various employees may receive money from customers, look up transactions identified by customers, and/or pay transferred money to customers. If an agent engages in fraudulent activity, either the customers or a money-transfer company may lose money. Therefore, it is advantageous to assess risk that an agent is or has engaged in fraudulent activity.